A good document storage solution can help turn a scattered mass of papers into a repository of valuable information. Rather than just putting old paperwork wherever it’s convenient, document storage takes a consistent, systematized approach. Powerful scanners and specialized software can digitize, tag, and name paper documents, then sort them into organized folders. This process makes information easily available whenever your employees need it.

This guide will walk you through the basics of a smart document storage system, from choosing the right equipment to building your own best practices.

What is document storage?

Document storage is the process of organizing and categorizing documents to ensure easy and consistent access. While document storage once meant boxes of documents and rows of file cabinets, today, it is largely a digital affair, where on-premise or cloud-based solutions maintain a library of digitized documents.

Document storage benefits

• Higher productivity: Organizations can save time by going digital, making it easier to save, transfer, and share important documents.
• Better standards: Organizations that use document storage and a process-oriented management system often find that they have an easier time adopting new workflows, implementing new formatting standards, and enforcing best practices at scale.
• Reduced costs: Storing physical documents securely can be expensive, especially for law offices, hospitals, and similar organizations. By increasing productivity and lowering storage costs, businesses can reduce their net operating expenses.

Document storage challenges

• Configuration: Errors during your initial system setup can slow down workflows. There will also be a learning curve as you get set up and teach your employees how the new system operates.
• Security controls: Cloud document storage providers can help ensure cybersecurity measures are properly implemented. However, you will still be ultimately responsible for setting up access controls, password protection, and similar protocols.
• Data governance: Companies need established protocols for managing electronic files from creation to deletion. Controlling access to data is also especially important for feeding information into artificial intelligence (AI) tools.

For more information about leveraging document storage, read 5 Reasons Why Online Document Storage Improves Business Operations.

How does document storage help remote work?

Digital document storage is particularly beneficial for remote workforces. Remote work carries some operational benefits, such as lower stress levels, but employees still need to be able to communicate and access documents as efficiently as they can in a physical office setting to operate at full capacity.

What do remote workers need for effective document storage?

• Cloud computing: Remote employees shouldn’t have to call or email office workers every time they need a file. Invest in a cloud storage service with organized, access-controlled folders.
• Coordinated workflows: In-office and remote workers need to be on the same page about saving, editing, and sharing documents. That way, it helps minimize situations where work is duplicated or overwritten.
• The right hardware and software: Remote workers often need the same tools that in-office workers have, whether that means high-quality document scanners or powerful scanning software.

Document storage system considerations

• Organization size: Most document management system solutions are scalable. Enterprise-level businesses may need specialized tools, though, including high-volume scanners and software with automatic data extraction.
• Document volume: Document Management System (DMS) solutions often charge based on the number of documents that need to be digitized. The amount of paperwork you have on hand may affect your budget for the project.
• Type of information: Any documents that contain sensitive information about employees or clients will need extra security considerations. This is especially true if you work in a regulated industry, such as healthcare or finance.

You can learn more about remote workers and document storage in How Digital Documents Allow Remote Workforces to Thrive.

Why secure document storage matters

While digital document storage is an efficient way to keep a vast library of documents, organizations must take proper precautions to ensure that every piece of information remains secure. Failure to securely store documents can result in harsh penalties in the event of a data breach. Additionally, many regulatory bodies require paper trails for auditing purposes, including taxes. For instance, the IRS recommends saving documents for up to seven years under certain circumstances.

To ensure that documents are safe, businesses need to form airtight document storage plans that cover every facet of their document management process, from access conditions to backup strategies, as one of the best practices. That also includes factors like price and ease of use, which will partially determine the ideal document storage system for an organization.

Secure document storage strategies

• Single-location storage: By securing records in one place, organizations can reduce the risk of losing or misplacing files. For example, this might mean using a single cloud storage service rather than a dozen different office computers.
• Access controls: Protecting sensitive information is critical, so businesses should take steps to ensure that only specific individuals can access these files. For digital systems, you can tie specific permissions to individual user accounts.
• Evaluating environmental threats: Sometimes, the biggest threats to document storage systems aren’t people, but the environment itself. Floods, pests, humidity, and fire hazards all represent threats to physical files and servers. Perform a risk assessment before settling on a storage plan.

Check out Secure Document Management: Best Practices and Tips for more details on document security.

How to create a document storage system

A document storage plan is essentially a detailed explanation of how to scan and store documents. Without a detailed storage plan, you risk security breaches, which can lead to violations of regulations like the Health Insurance Portability and Accountability Act (HIPAA) and the General Data Protection Regulation (GDPR),and other applicable laws and regulations. That means heavy fines, complicated fixes, and loss of trust from your clients and customers.

What you need in a document storage plan

• Document classification: As one of the best practices, your document storage plan should include a system with detailed criteria for determining how a document should be classified. Good scanning software can recognize different types of records and tag them with the appropriate metadata.
• Scalability: Organizations change size over time. Designing a scalable document storage system will save valuable time and resources. Make a plan that can handle thousands of documents just as easily as dozens.
• Backup and recovery: All systems need safeguards. Backup and recovery procedures will mitigate losses in the event of an error that corrupts document data. Storing backups on a different network or cloud server is also a good cybersecurity practice.

In The Most Important Document Storage Strategies for Businesses and 6 Document Storage Ideas for Businesses, you’ll find more tips and best practices.

How to find the best document storage solutions

Organizations can build their own document storage solutions from the ground up, but it may not be the most practical option. Existing cloud storage services can provide easy access to digital records, while also including key features like user permissions and document classification out of the box.

Best cloud services for document storage

• Dropbox: Dropbox allows both SMBs and enterprises to get cloud document storage up and running. Users can upload and download files and images from a variety of different devices, and the platform can create automatic backups. Dropbox also offers e-signature technology, making it easier to collect legally binding signatures.
• Microsoft OneDrive: OneDrive comes preinstalled on Microsoft Windows computers. This software gives users access to 5GB of cloud storage and 15GB of mailbox storage for free, with more options available for paid members. Organizations that use Microsoft Office can automatically sync their documents with OneDrive.
• M-Files: M-Files is a document storage solution for businesses in accounting, management consulting, financial services, life sciences, and manufacturing. The service pays special attention to metadata and the relationships between various files. The M-Files platform also offers integrations with both Microsoft 365 and Google Workspace.

For more software and services you can use, read The 5 Best Cloud Document Storage Services, The 9 Best Document Storage Systems, and 7 Document Storage Companies Your Business Can Rely On.

Our recommendation: RICOH PaperStream Capture Pro software

Digital document storage requires scanning software that can digitize documents quickly, accurately, and at scale. Ricoh’s PaperStream Capture Pro software can do all of these things. Using refined optical character technology (OCR) algorithms, PaperStream can turn physical paperwork into editable, searchable digital files. PaperStream can also tag metadata and sort files into the appropriate folders, creating a systematized document storage solution with minimal human oversight. Since PaperStream Capture Pro is fully compatible with Ricoh’s lineup of high-quality document scanners, you’ll have both the software and the hardware you need to get your data organized and stored properly.

Note: Information and external links are provided for your convenience and for educational purposes only, and shall not be construed, or relied upon, as legal or financial advice. PFU America, Inc. makes no representations about the contents, features, or specifications on such third-party sites, software, and/or offerings (collectively “Third-Party Offerings”) and shall not be responsible for any loss or damage that may arise from your use of such Third-Party Offerings. Please consult with a licensed professional regarding your specific situation as regulations may be subject to change.